Check out our Flash Reports for the latest SEC- and compliance-related news, trends, and insights.
The SEC adopted amendments to Regulation S-P requiring broker-dealers, investment companies, registered investment advisors, and transfer agents to implement and maintain policies and procedures regarding an incident response program that are designed to detect, respond, and recover from unwarranted access or use of client information.
Read MoreThe SEC voted to propose a set of rules and interpretations intended to improve the quality and transparency of investors’ relationships with investment advisers and broker-dealers while protecting access to various investment relationships and products.
OCIE released a compiled list of compliance issues relating to fees and expenses most frequently identified in deficiency letters sent to advisers.
According to the SEC, the principle, sole owner of an investment firm falsely claimed more than $100 million in AUM from 2012-2016 to meet the minimum eligibility requirement for SEC registration. The owner of the firm also made violations to the custody rule by failing to provide quarterly statements to clients and by failing to organize an annual surprise audit of assets.
On March 22nd, Peter Driscoll, OCIE Director, announced plans for its third cybersecurity sweep exam in four years. The next cyber initiative will focus on advisers who maintain remote offices and advisers that have merged firms.
The steady increase in examination rates is due to an internal restructuring of resources that have allowed for approximately 100 staff members to be reassigned from broker-dealer and market oversight units to the investment advisors and investment companies division.